Question

HTC started as an original equipment manufacturing firm (OEM) for brand-name mobile device companies. Later, it started offering a line up of innovative and high-performance smartphones by acquiring One & Co., a San Francisco-based design firm. This strategic move of HTC is known as __________.

Answer 1

The correct answer is: forward vertical integration.

Step-by-step explanation:

Forward vertical integration is a way to grow a business by integrating into a new link in the value chain in which the company operates. Forward integration occurs when, for example, a manufacturer creates its own network of stores to sell its products. On the contrary, a case of backward vertical integration would be the assumption of a retailer that decides to create its own line of products to sell in its store.